Final-demand earnings multipliers are based on the change in final demand produced by an activity such as tourism spending in the region and equals the output multiplier for an industry multiplied by the household-row entry in the direct requirements table.
Earnings multipliers for the tourism-related industries in Table 3 can be compared with those found in our review of studies employing tourism multiplier methodologies for U.S.
TABLE 5 TOURISM OUTPUT AND EARNINGS MULTIPLIERS IN SELECTED U.S.
Comparing the implicit final-demand output and earnings multipliers in Table 7 with those available for other U.S.
The direct-effect earnings multiplier indicates the ratio of total earnings generated by the change in final demand to the earnings directly generated.
For example, to obtain the direct-effect multiplier estimate of total earnings associated with visitor spending on hotel lodging in Washington, D.C., we multiply the earnings directly generated in row D, column 2 ($230.2 million) by the direct-effect earnings multiplier in row D, column 4 (1.3067) to obtain the direct-effect multiplier earnings in row D, column 6 ($300.9 million).
The tourism final-demand earnings multiplier (0.166) ranks 10th out of 38 aggregate industries, while the direct-effect employment multiplier for visitor spending (9.06 jobs per $1 million in final demand) ranks 5th.
